The LPG egment suffered loss as the company had to shell out Rs 700 crore in fuel subsidies.
GAIL India Ltd, the nation's largest natural gas distributor, today reported a 7 percent drop in its September quarter profit after it made losses in the cooking gas (LPG) business. Net profit in July-September dropped to Rs 915.67 crore against Rs 985.38 crore a year ago.
"Major reason for decrease in PBT and PAT is loss in the LPG segment, where we lost Rs 377 crore in Q2 because of the subsidy of Rs 700 crore, though realisation has been better as compared to the corresponding quarter in the previous year," says GAIL Chairman and Managing Director BC Tripathi.
He says production of LPG has been maintained and the subsidy level too remained the same, but the cost of gas has gone up, which resulted in loss of LPG of Rs 377 crore.
The other reason is reduction in transmission volume, which has gone down to 95 million standard cubic meter from 106 million standard cubic meter because of the lower supply of gas coming from KG-D6 and Panna Mukta and Tapti as well.
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